Human Genome agrees to Glaxo's $3.6B bid

LONDON (MarktWatch) -- Human Genome Sciences Inc.
hgsi
definitively agreed to be acquired by GlaxoSmithKline PLC
GSK, +0.14%GSK, -0.59%
for $14.25 a share in cash, the drugmakers said Monday. The directors of both companies approved the deal. The deal values Human Genome Sciences at about $3.6 billion on an equity basis, or about $3 billion net of cash and debt. GlaxoSmithKline will will get full ownership of Benlysta, albiglutide and darapladip and expects to get more than $200 million in cost synergies by 2015. In core earnings, the deal is expected to be accretive to GlaxoSmithKline in 2013. "After a thorough analysis of strategic alternatives, HGS has determined that a combination with GSK is the best course of action for our company and the best way to maximize value for our stockholders," said H. Thomas Watkins, chief executive at Human Genome Sciences, in a statement. Shares of HGS closed at $13.58 on Friday, while shares GlaxoSmithKline were little changed in afternoon action in London. (Resending to add related tickers.)

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